Singleee
Dryer sheet wannabe
So, I am taking a reappraisal of my whole financial picture.
The first on the list is the Emergency Fund, or as I call it, my "Oh S**t Money". I've always kept about 4-6 months of basic expenses aside for the "emergency". In 8 years, I've never used it. So I considered the amount again from first principles, and arrived at a rather different answer:
I have no car, so no need to consider accidents or repair.
Properties are all apartments so there is no external or structural maintanence or weather damage etc to consider. All are fully insured so no other internal damage or other repairs to consider. Furniture is all new in the rentals so no need to replace under "wear and tear". Possibility that one of TV, Washing Machine, A/C units or water heaters may go pop. So say $500 for that.
Health is good and comprehensive medical coverage provided by employer, no deductibles.
As far as I can see, my only emergency will be getting fired. My emergency fund needs to survive any period of unemployment. With a 3 month notice period, or with 3 months salary in hand, I can last about 8 months at my survival level spending, as it's little more than 30% of net.
So by putting aside emergency money against a period of unemployment, I am betting against myself finding another job within 8 months...mmmmm
In the end, the "Sleep-at-Night-Ometer" says put 2 months expenses aside, just for the sake of it.
Feel free to point out the flaws in the plan.
Singlee
The first on the list is the Emergency Fund, or as I call it, my "Oh S**t Money". I've always kept about 4-6 months of basic expenses aside for the "emergency". In 8 years, I've never used it. So I considered the amount again from first principles, and arrived at a rather different answer:
I have no car, so no need to consider accidents or repair.
Properties are all apartments so there is no external or structural maintanence or weather damage etc to consider. All are fully insured so no other internal damage or other repairs to consider. Furniture is all new in the rentals so no need to replace under "wear and tear". Possibility that one of TV, Washing Machine, A/C units or water heaters may go pop. So say $500 for that.
Health is good and comprehensive medical coverage provided by employer, no deductibles.
As far as I can see, my only emergency will be getting fired. My emergency fund needs to survive any period of unemployment. With a 3 month notice period, or with 3 months salary in hand, I can last about 8 months at my survival level spending, as it's little more than 30% of net.
So by putting aside emergency money against a period of unemployment, I am betting against myself finding another job within 8 months...mmmmm
In the end, the "Sleep-at-Night-Ometer" says put 2 months expenses aside, just for the sake of it.
Feel free to point out the flaws in the plan.
Singlee